Surge Energy America Publishes 2024 Corporate Sustainability Report

HOUSTON, Sept. 24, 2024 /PRNewswire/ -- Surge Energy US Holdings Company ("Surge Energy" or the "Company") today announced the release of the Company's 2024 Corporate Sustainability Report. This is the Company's third publicly available report and fifth overall report, providing a comprehensive update on Surge's sustainability goals, relevant operational investments, and environmental, social, and governance ("ESG") initiatives. Additionally, the report provides disclosures in line with the recommendations of the Sustainability Accounting Standards Board ("SASB") for the Oil and Gas – Exploration and Production industry.

"We remain steadfast in our commitment to being a responsible operator and this report provides our stakeholders with key milestones, information, and progress on our sustainability goals," stated Chief Executive Officer Linhua Guan. "Our team continues to invest in initiatives to improve our environmental performance, in our people to keep them safe, and throughout the company to remain competitive in the market. This report presents a holistic view of this commitment, our progress in 2023, and an outlook of where we intend to improve and develop."

Performance highlights from 2023 included in Surge's 2024 Corporate Sustainability Report:

• Achieved zero employee recordable injuries for the third consecutive year and second year with zero Motor Vehicle incidents.
• Delivered a company record low spill performance by volume.
• Continued utilization of the Company's four produced water recycling facilities for completion operations. The practice of using recycled produced water for completion operations both conserves fresh water and reduces operating expenses. Since the inception of the water recycling program in 2017, the Company has conserved over 5 billion gallons of water through the end of 2023 and over 6 billion gallons through June 2024. Thus far in 2024 99% of water used in our completion operations was recycled, which exceeds the water recycling goal established in our 2022 Corporate Sustainability Report.
• Elimination of over 365 thousand metric tons of CO2e through innovation, operational excellence, and investments in emissions-eliminating infrastructure and operations such as water infrastructure, electrical infrastructure, and the use of dual fuel engines in our completions operations.
• Increased our Leak Detection and Repair surveys by 77% in 2023 relative to 2022.
• Maintained 45% of variable compensation linked to sustainability performance for all employees for the second consecutive year.

The Company remains committed to the Sustainability Goals established in the 2022 Corporate Sustainability Report, which were created to drive progress in the areas deemed most material to our business. These goals address Scope 1 GHG intensity, frac fleet fuel consumption, Scope 1 methane intensity, and recycled water use and by focusing on these goals we have observed improvement and a better understanding of the challenges we face to meet them. For example, one key challenge the Company faced in recent years was the integration of assets acquired since 2021 and the constraints observed with third-party midstream gas gathering capacity. These constraints have resulted in higher flaring than anticipated on this acquired acreage. Flaring in our legacy acreage position continued to decrease and was minimal in 2023. We continue to work with our midstream partners to find solutions that allow us to minimize flaring across our entire acreage position.

Surge's full 2024 Corporate Sustainability Report can be accessed here. For more information about sustainability at Surge, please visit our Corporate Responsibility webpage.

About Surge Energy

Surge Energy is an independent oil and natural gas company focused on the development, exploitation, production and acquisition of oil and natural gas reserves in the Midland Basin of West Texas, one of three primary sub-basins of the Permian Basin. The Company is headquartered in Houston, Texas, and currently holds approximately 135,000 net acres in the Permian Basin as of June 30, 2024. For more information, visit our website at www.SurgeEnergyA.com.

Investor Relations
Email: InvestorRelations@SurgeEnergyA.com
Phone: 832-333-2400

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SOURCE Surge Energy